Cost-plus pricing requires adding up all the costs required to get the product to where it must go, plus shipping and ancillary charges, and a profit percentage.

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Cost-plus pricing is a pricing strategy that involves calculating the total cost of producing a product, which includes all the direct and indirect costs, such as materials, labor, overhead, and so on. Then, a profit margin or markup percentage is added to the total cost to determine the selling price of the product. The shipping and ancillary charges are also included in the total cost before adding the profit margin.

Cost-Plus Pricing Requires Adding Up All the Costs Required to Get